How Much House Can I Afford?
Use this home affordability calculator to find out how much of a mortgage you can qualify for and how much house you can afford.
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Adjust your price range
See how your budget changes based on your affordability range
- Target DTI
Your debt-to-income (DTI) ratio compares your total monthly debt payments with your gross monthly income.
It's calculated by dividing your monthly debt payments, including the estimated mortgage payment, by your monthly income before taxes. A lower DTI means less of your monthly income goes toward debt.
- 19%
- Home Price
- $173,657
- Monthly Payment
Your estimated monthly housing payment includes principal and interest, property taxes, homeowners insurance, HOA fees, and private mortgage insurance when applicable.
- $1,029
Monthly Budget Breakdown
- Monthly Housing Payment
- $1,029
- Debt Payments
- $0
- Income Taxes
- $1,625
- Left Over
- $2,763
LendingTree’s home affordability calculator helps you understand how much home you can afford based on your income and other debts.
How to use our mortgage affordability calculator
Enter your gross annual income and total monthly debts, choose a down payment amount and select a loan term to figure out how much house you can afford.
LendingTree’s calculator defaults to a 30-year fixed-rate mortgage, but there’s a 15-year fixed-rate term option if you can afford a higher monthly mortgage payment and want to save on interest charges.
How to adjust your price range
Our calculator is preset to a “conservative” 28% DTI ratio; most lenders set a maximum DTI limit between 41% and 45%. You can slide the bar up to an “aggressive” 50% DTI ratio if you’re willing to make room in your budget for a higher payment.
No. This mortgage calculator can estimate your potential payment and how much you can afford to spend on a home, but it isn’t the same as an official mortgage prequalification. For prequalification, a lender reviews your financial information to determine how much you may qualify to borrow.
More mortgage calculators
How affordable is the housing market right now?
Today’s market gets a C grade, meaning conditions remain challenging for buyers. Home prices have eased slightly and inventory is improving, but mortgage rates remain relatively expensive.
Your personal finances determine how much house you can afford, but market conditions affect what that budget can buy. Mortgage rates, home prices, housing inventory and seasonal trends all influence how far your dollar goes.
See LendingTree’s current housing market affordability grade for a deeper look at how this quarter’s rates, prices, inventory and seasonality stack up.
[MortgageRateTable init-headline-tag=”H2″ init-loan-type=”Purchase” init-estimated-down-payment=40000 init-estimated-property-value=350000]
What factors determine how much mortgage I can afford?
How much mortgage you can afford comes down to two things:
- How much a mortgage lender will qualify you to borrow, based on your income, debt and down payment savings
- How much money you have in your budget after all of your other expenses are covered
Weighing both of these components is crucial, because you typically can’t spend more on a home than you can borrow, and you shouldn’t borrow more than you can comfortably afford to pay each month.
Factors that affect how much house you can afford
Your debt-to-income (DTI) ratio
Lenders divide your total monthly debt payments by your income to determine whether you can afford another loan.
Your down payment
The higher your down payment, the higher the loan amount you can qualify for.
Your loan term
A 30-year fixed-rate mortgage offers the lowest stable payment. If you choose a 15-year fixed-rate term, you’ll save money on interest but won’t qualify for as much house.
Your interest rate
Higher mortgage rates mean higher monthly payments. So the higher your rate, the less house you can afford.
How much house can I afford based on my salary?
| Annual income | Maximum affordable home price
With a 28% front-end DTI ratio. Mortgage payment calculation assumes a 3% down payment on a 30-year conventional loan with a 6.65% interest rate.
|
|---|---|
| $200,000 | $590,970 |
| $150,000 | $443,450 |
| $100,000 | $295,500 |
| $80,000 | 236,500 |
| $70,000 | 207,000 |
| $60,000 | 177,500 |
| $50,000 | 147,800 |
Financial planners often use the “28/36 rule” when it comes to home affordability:
-
The 28 is a recommended DTI ratio for your monthly housing expenses compared to your gross monthly income. Lenders call this your “front-end” DTI ratio.
- To calculate the maximum you can afford to spend on housing each month, multiply your monthly income by 28%.
-
The 36 is a recommended DTI ratio for your housing expenses, plus any other debt like auto loans, credit cards, student loans or other accounts that appear on your credit report. This is your “back-end” DTI ratio.
- To calculate the maximum you can afford in total debt per month, multiply your monthly income by 36%.
28/36 rule examples (with math)
In the current market, you could likely afford a home worth up to $590,970 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $4,667.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $6,000.
Here’s how we got to those numbers, assuming you make $200,000 per year ($16,667 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 16,667 x 0.28 = $4,667 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $4,667. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 16,667 x 0.36 = $6,000 Your total monthly debt, including your mortgage payment, shouldn't exceed $6,000.
In the current market, you could likely afford a home worth up to $443,450 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $3,501.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $4,500.
Here’s how we got those numbers, assuming you make $150,000 per year ($12,500 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 12,500 x 0.28 = $3,500 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $3,500. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 12,500 x 0.36 = $4,500 Your total monthly debt, including your mortgage payment, shouldn't exceed $4,500.
In the current market, you could likely afford a home worth up to $295,500 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $2,333.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $3,000.
Here’s how the 28/36 rule math works, assuming you make $100,000 per year ($8,333 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 8,333 x 0.28 = $2,333 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $2,333. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 8,333 x 0.36 = $3,000 Your total monthly debt, including your mortgage payment, shouldn't exceed $3,000.
In the current market, you could likely afford a home worth up to $236,500 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $1,867.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $2,400.
Here’s how we got those numbers, assuming you make $80,000 per year ($6,667 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 6,667 x 0.28 = $1,867 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $1,867. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 6,667 x 0.36 = $2,400 Your total monthly debt, including your mortgage payment, shouldn't exceed $2,400.
In the current market, you could likely afford a home worth up to $207,000 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $1,633.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $2,100.
Here’s how we got those numbers, assuming you make $70,000 per year ($5,833 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 5,833 x 0.28 = $1,633 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $1,633. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 5,833 x 0.36 = $2,100 Your total monthly debt, including your mortgage payment, shouldn't exceed $2,100.
In the current market, you could likely afford a home worth up to $177,500 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $1,400.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $1,800.
Here’s how we got those numbers, assuming you make $60,000 per year ($5,000 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 5,000 x 0.28 = $1,400 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $1,400. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 5,000 x 0.36 = $1,800 Your total monthly debt, including your mortgage payment, shouldn't exceed $1,800.
In the current market, you could likely afford a home worth up to $147,800 using a conventional loan.
- Your monthly mortgage payment, including taxes and insurance, shouldn’t exceed $1,167.
-
Your total monthly debt, including your mortgage payment, shouldn’t exceed $1,500.
Here’s how we got those numbers, assuming you make $50,000 per year ($4,167 per month) before taxes.
What you want to know Calculation step The math What the results mean If my “front-end” DTI ratio is 28%, what monthly mortgage payment can I afford? Multiply your monthly income by 28% 4,167 x 0.28 = $1,167 Your monthly mortgage payment, including taxes and insurance, shouldn't exceed $1,167. If my “back-end” DTI ratio is 36%, what monthly debt payments can I afford? Multiply your monthly income by 36% 4,167 x 0.36 = $1,500 Your total monthly debt, including your mortgage payment, shouldn't exceed $1,500.
How do lenders calculate how much I can afford?
Your DTI ratio is the main factor lenders use to determine how much they’ll qualify you to borrow. They divide your monthly debt load by your monthly income to calculate it, and typically won’t allow your DTI ratio to exceed 45%.
Your income is calculated pretax, meaning paycheck deductions for retirement or health insurance aren’t factored in. So while a lender may say you can afford extra debt, your take-home pay may not be enough to cover your living expenses.
Lenders don’t take all of your expenses into account — just the kinds of debts that would appear on a credit report, like auto loan or student loan payments. So all your extra commitments, like gym memberships, cell phone bills and groceries, won’t be considered.
6 ways to increase how much house you can afford
BOOST YOUR CREDIT SCORE
Keep your credit card balances low, pay everything on time and avoid opening a lot of new credit accounts. A higher credit score will get you a lower interest rate, which equals a lower monthly mortgage payment.
MAKE A BIGGER DOWN PAYMENT
Your loan amount and mortgage payment will be lower with a larger down payment. The full amount doesn’t have to be from your own funds, however. You can get a gift from a relative, take out a 401(k) loan or combine your down payment with down payment assistance programs.
GROW YOUR MONTHLY INCOME
Don’t forget your side hustle income — you can use it to help you qualify for a loan, as long as your tax returns show part-time income for the last two years. Plus, two incomes are better than one, so if you can cosign the mortgage with someone, you’ll have more borrowing power.
REDUCE YOUR MONTHLY DEBT
The less debt you have, the more house you can afford. If your DTI ratio is holding you back, consider putting a lump sum toward an outstanding personal loan balance, or selling a car and paying off the auto loan.
CHOOSE A LONGER LOAN TERM
You’ll be able to afford a bigger home with a longer repayment term, such as 30 years. However, if the higher monthly payment doesn’t strain your monthly budget, a shorter term can save you thousands in interest charges.
CONSIDER A DIFFERENT LOAN PROGRAM
Government-backed loan programs may allow for a higher DTI ratio than conventional loans, even if you have a lower credit score. Still, they come with higher mortgage insurance costs or guarantee fees that could affect how much you can afford.
A higher DTI may also bring higher scrutiny and, in some cases, trigger a requirement for compensating factors (like a large amount of cash in the bank, also known as mortgage reserves). Lenders always try to ensure that you can afford the mortgage payments you take on, no matter the loan program.